5G in Manufacturing to Reach US$10.8 Billion by 2030

  Enquiry / contact me

According to ABI Research, 5G cellular connections in manufacturing is expected to reach US$10.8 billion by 2030, at an annual rate of 187%. This requires that companies set up an alternative set of measures to evaluate the impact of 5G on factory floors

5G in Manufacturing to Reach US$10.8 Billion by 2030
5G in Manufacturing to Reach US$10.8 Billion by 2030

The global market advisory firm ABI Research reported that the market for 5G cellular connections in manufacturing is expected to reach US$10.8 billion by 2030, at a Compound Annual Growth Rate (CAGR) of 187%. 5G and edge computing constitute a technological leap that heralds a significant transformation of business models for all industries, including manufacturing and associated Industry 4.0 verticals

“But, to capture the value at stake, ecosystem stakeholders will first need to evaluate how to measure the impact of 5G and edge deployments,” says Don Alusha, Senior Analyst at ABI Research. The current Industry 4.0 digitalization discourse centers around conventional financial metrics (e.g., return on investment, net profit, and cash flow) as the yardstick to measure 5G and edge computing effectiveness. But these metrics are financial measurements to gauge profit and do not lend themselves to the factory floor. “Therefore, Industry 4.0 ecosystem entities must consider an alternative set of measurements that look at how 5G and edge deployments aid manufacturing establish operational rules to run a plant. They are throughput, inventory and operational expense for the incoming flow of capital, for capital located inside, and for capital going out, respectively,” Alusha explains.

Throughput, inventory and operational expense

These three measurements enable Industry 4.0 partners (e.g., ABB, Bosch, Siemens) to institute a direct connection between the 5G’s utility and what takes place on the factory floor. In turn, they will be able to use that connection to find a logical relationship between daily plant operations and the overall company’s performance. Only then, will Industry 4.0 verticals have a basis for knowing the real benefit of 5G and edge computing. “Furthermore, equally important is the ability to measure risk when looking to adopt 5G and edge technology assets. Discussions on new technology adoption have always been based on an assessment of risk and reward. If the reward is truly compelling, adopters will take the risk. 5G and edge offer unprecedented commercial opportunities, but they inherently constitute new technologies and therefore there is a risk attached,” says Alusha.

The importance of supply chain

Continued attempts to keep up productivity growth, increase process automation to meet changing client demands, and the need to establish a reliable supply-chaining that spans multiple geographies are forcing manufacturers to be more flexible. According to Alusha, “To understand the importance of supply chaining and its significance in terms of competitive advantage, one need not go any further than Wal-Mart. Wal-Mart is the largest retailer in the world (Amazon being second) and it does not produce a single item. All it “makes” is a hyper-efficient supply chain.” The capacity, reliability, high-quality service, and speed provided by 5G and a hyperconverged edge compute can optimize operations for a super-efficient supply chain.

New business value

With greater reliability and data speeds that will surpass those of 4G networks, a combination of 5G and local edge compute will pave the way for new business value. Commercial benefits will accrue along three broad aspects: agility and process optimization; better and more efficient quality assurance and productivity improvement. “The implications for solution providers such as Ericsson, Huawei, Nokia and ZTE are that they must enhance their “value add” by complementing their deep technical expertise with business expertise including vertical industry knowledge, new functional expertise (sales, marketing, and accounting) and solution design and consulting expertise tailored at niche use cases,” Alusha concludes.

These findings are from ABI Research’s 5G and Edge Networks in Manufacturing application analysis report. This report is part of the company’s 5G Core & Edge Networks research service, which includes research, data, and ABI Insights. Based on extensive primary interviews, Application Analysis reports present in-depth analysis on key market trends and factors for a specific application, which could focus on an individual market or geography.

Posted on March 11, 2020 - (299 views)
Related articles
How Will Advanced Analytics and Artificial Intelligence Drive Development in Industrial Machine Control?
Automotive Test Scopes
Softing Industrial Automation Reinforces the Open Integration Network
Analog Devices Supports Customers During COVID-19 Pandemic
Low Noise Solid State Relays
Monitoring High-Speed Thermal Events and Fast-Moving Targets
Enhanced UXR Oscilloscopes
Sensata Launches New Low Noise Solid State Relays
How Coronavirus Might Impact European Manufacturing Industry
Deutsche Messe Announces Cancelation of Hannover Messe 2020
Fastener Fair France
Robot Tools RFID Identifications
Drives & Controls 2020: The Home of Automation
ATZTA TRX Ultrasonic Flowmeter for Air
Co-creating the Future of the IoT World
Lika-lab: a new Business Unit for Special Requirements
High Power Density 10W DC/DC Converters
Engineered Assemblies for the Power Industry
Hannover Messe: Home of Industrial Pioneers
The Sensor Show - Munich
3D Printer and Method Materials
PROFINET Diagnostics Without Hardware
Customizable Integrated Drive System
Software for Product Data Management
Unitronics' AC Servo Drives & Motors
Procentec Provides Critical Companies with Free Diagnostic Software for Industrial Networks
Data Extraction with AI-powered Anomaly Detection
Secure Portal for Measurement Data Storage
MP600 Limit Sensors - Detect 2 Positions within Microns
Safety Laser Scanners To Banish Space Problems in Mobile Applications